KMF - Midstream/Energy Fund

Fact Sheet

Overview
as of 12/31/11
Symbol
KMF
Exchange
NYSE
Inception Date
11/24/2010
NAV updates1
Thursdays &
month end
Total Assets
$802 million
Leverage
Quarterly Distribution2 ($/share)
$0.4175
% of portfolio assets with Call Options
4.3% 
Objective

KMF is a closed-end fund whose investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its stockholders. KMF invests principally in securities of companies in the Midstream/Energy Sector, consisting of: (a) Midstream MLPs, (b) Midstream Companies, (c) Other MLPs and (d) Other Energy Companies. KMF anticipates that the majority of its investments will consist of equity investments in Midstream MLPs and Midstream Companies.

Investment Merits
Midstream Opportunities

- Opportunity to invest across the full value chain for the Midstream Sector through investments in Midstream Master Limited Partnerships ("MLPs") and Midstream Companies.
- Midstream Sector generates attractive risk-adjusted returns and has stable characteristics.
- Development of "unconventional reserves" is changing the North American energy industry, driving the need for new Midstream assets and creating significant growth opportunities for the Midstream sector.

Attractive Fund Structure

- KMF issues a Form 1099 (no K-1).
- Suitable for IRAs, foundations and tax-exempt accounts, because unlike direct holdings in MLPs, KMF does not generate unrelated business taxable income (UBTI).
- KMF is a Regulated Investment Company (RIC) and, as such, does not pay income taxes at the fund level.

Access to Private Investments

KMF provides access to private investment opportunities not available to retail investors.

Portfolio
as of 12/31/11
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Top 10 Holdings
as of 12/31/11
Kinder Morgan Management, LLC
9.2%
The Williams Companies, Inc.
7.5%
Kinder Morgan, Inc.
6.6%
El Paso Corp.
4.5%
Enbridge Energy Management, LLC
4.2%
Buckeye Partners, LP
4.1%
Targa Resources Corp.
3.6%
ONEOK, Inc.
2.8%
OGE Energy Corp.
2.8%
Teekay Offshore Partners, LP
2.4%
47.7%

For the full portfolio, please see the Schedule of Investments in our most recent quarterly or annual report

Quarterly Distributions per Share
[image]

View the complete Distribution History for KMF.

 

Tax Character of 2011 Distributions
Qualified dividends 21%
Ordinary dividends 79%
  100%

View Forms 1099-DIV and Tax Information for KMF

Total Return (NAV plus distributions)
11/24/10 to 12/31/11
[image]
Share Price and NAV History
11/24/10 to 12/31/11
[image]
Premium/Discount to NAV
11/24/10 to 12/31/11
[image]
Calendar Year Returns
as of 12/31/11
               
2011
NAV and distributions3              
20.8%
NAV only              
12.9%
Share price and distributions3              
6.8%
Share price only              
-0.2%
Returns (Not annualized)
as of 12/31/11
         
3 Mo.
6 Mo.
1-Yr 
Since Inception
NAV and distributions3        
26.4%
7.6%
20.8%
22.6%
NAV only        
22.0%
2.1%
12.9%
14.5%
Share price and distributions3        
20.4%
4.8%
6.8%
6.8%
Share price only        
16.2%
-0.6%
 -0.2%
-0.2%
Growth of Hypothetical $10,000 Investment
Date
NAV and Distrib 
Share Price
and Distrib 
Inception (11/24/10)
$10,000
 $10,000
12/31/10
10,149
10,000
12/31/11
12.262
10,680
 
 
 

 

This table illustrates the growth of a hypothetical $10,000 investment in the fund's common shares beginning on the inception date with all distributions reinvested through the Dividend Reinvestment Program (DRIP). Ending values as of the dates shown in the table. Performance does not reflect transaction fees or broker commissions. Past performance is no guarantee of future results.

1) Weekly NAVs are calculated as of close of business on Thursdays and posted to our website on Fridays after the market closes at KMF NAV. Month-end NAVs are issued via press release and posted to the website within a few days of the end of the month.
2) Payable 1/13/12 (ex-date 12/28/11) for the quarter ended 11/30/11.
3) Assumes that distributions have been reinvested through the Dividend Reinvestment Program (DRIP).

This material shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer or sale is not permitted. Past performance is not a guarantee of future results. An investment in the fund could suffer loss. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period. Before making an investment in the fund, you should consider the investment objective, risks, charges and expenses of the fund, which, together with and other important information are included in the fund's most recent prospectus and other filings with the SEC. There can be no assurance that the fund's investment objectives will be attained. Shares of closed-end funds frequently trade at a market price that is below their net asset value. Leverage creates risks which may adversely affect return, including the likelihood of greater volatility of net asset value and market price of common shares, and fluctuations in dividend rates on any preferred shares.

NOT FDIC INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE

Copyright © 2012 - KA Fund Advisors, LLC - All rights reserved.